Triangle man is accused of fraud

A nationwide crackdown on mortgage fraud has resulted in money-laundering charges against a Knightdale business.

The case against Kimithi "Kippy" Davis, who operated Pro Bowl Mortgage and Pro Bowl Consulting, was one of several highlighted by U.S. Attorney George Holding at a news conference Thursday in Raleigh.

The cases are part of Operation Stolen Dreams, a nationwide law enforcement effort to identify and prosecute civil and criminal cases against those involved in mortgage fraud.

Since March 1 the operation has resulted in 485 arrests and 191 civil actions across the country.

Davis was charged April 1 with money laundering and pleaded guilty eight days later. Authorities accused him of helping customers secure personal and business loans and real estate financing by submitting false information to lenders.

Efforts to reach Davis on Thursday were unsuccessful.

Holding said the bursting of the housing bubble has made it more difficult for those committing mortgage fraud to hide.

"The fraudsters can get away with it as long as property values are rising because the fraud ultimately is covered up by the increase in property value," Holding said. "When you have such a collapse in the property market like we've had over the last several years that exposes the fraud."

Holding, the top federal prosecutor in Eastern North Carolina , said his office has created a mortgage fraud task force with representatives from a number of agencies, including the FBI, the U.S. Department of Housing and Urban Development and the Internal Revenue Service.

Holding said mortgage fraud often involves a team of people, including corrupt professionals such as attorneys, appraisers, bankers and mortgage brokers who must be licensed to practice.

Although authorities detailed just five cases Thursday, they said more are expected in the coming months.

One of those five involved Amy Robinson, a former North Carolina lawyer who was charged in March with conspiring to commit mail, wire and bank fraud. She pleaded guilty last month.

Authorities alleged that over 3-1/2 years, Robinson prepared false and inaccurate documents while acting as the closing attorney on at least 50 properties in the state. Lenders issued loans worth $2.48 million to those borrowers.

"If the recent financial crisis teaches us nothing else, it is that we all pay a price for mortgage fraud," Holding said.